Russia’s second largest gas producer Novatek has signed a long-term liquefied natural gas sales and purchase agreement for volumes from its grassroots Arctic 2 project with Shenergy of China.

The SPA calls for the cumulative supply of more than 3 million tonnes of LNG over a 15-year term, which will be delivered to terminal in China on a delivered ex-ship (DES) basis.

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“Our LNG commercial strategy is to diversify our client base and target end consumers in the fast-growing Asian Pacific region and the LNG volumes produced from our Arctic LNG 2 project are core to our long-term objective of delivering affordable, secure and sustainable natural gas for many decades,” said Novatek chairman, Leonid Mikhelson.

“The Chinese market is one of the key regions in our LNG marketing strategy and we plan to further increase our supplies of liquefied natural gas to this country.”

The Arctic 2 project in Russia’s Far East envisages three 6.6 million tonnes per annum liquefaction trains and cumulative condensate production capacity of 1.6 million tpa.

Partners in the LNG project are Novatek on 60% and Total, China National Petroleum Corporation, China National Offshore Oil Corporation and Japan Arctic LNG (a consortium of Mitsui and JOGMEC) – all with 10% interests.

Shenergy last year signed a heads of agreement with Malaysia’s Petronas for the supply of approximately 1.5 million tpa of LNG to its Wuhaogou import terminal in China.

Petronas at the time said this 12-year contract, scheduled to start next year, came on the back of it being a major LNG supplier to Shenergy’s subsidiary Shanghai LNG since 2006.